Funding a Medtech Startup in Uncertain Times

Craig Davis is no stranger to the high-stakes world of early-stage medtech. His journey began as a partner at the family office LaSalle Investments. During this tenure, the firm played an instrumental role in the foundation of companies such as Merge Healthcare and OrthoScan, both of which later emerged as billion-dollar corporations. 

Later on, as a senior member of a team backed by the private equity firm GTCR, he successfully rolled up companies in the urologic device space. He was also one of the partners at Healthios — a boutique healthcare-focused investment bank. The skills honed in these positions equipped Craig with the know-how and the audacity to plunge into uncharted territories as the CEO of NovaScan.

NovaScan is a company revolutionizing cancer diagnostics with a low-cost, single-use device capable of real-time cancer detection and stratification. Their platform technology uses electrical impedance to calculate cold frequency — a parameter that dramatically increases as cancer develops and advances. The device can instantaneously analyze tissue cells either in vivo (inside the body) or ex vivo (outside the body).

With NovaScan's technology, clinicians can confirm the presence of cancer in mere seconds, thus improving diagnosis speed and patient care. Moreover, the platform also allows for stratification, enabling clinicians to identify potentially aggressive cancers early on. Currently, the scope of detection encompasses skin, breast, lung, pancreatic, and esophageal cancers. 

NovaScan is still in the clinical stage. However, Craig and his team have been actively gathering data for lung and GI applications at the Texas Medical Center and soon at the University of Chicago. The device has shown promising results, with sensitivity and specificity of around 90%.

Craig and his team are working toward clearance and partnerships to bring their groundbreaking technology to the market. In their capable hands, the future of NovaScan is brimming with potential.

Key Learnings From Craig’s Experience

• Early-stage development calls for efficiency and creativity. It’s possible to go off the beaten track and find quicker paths for product iteration, resulting in more time and money.

• When it comes to clinical trials, the magic formula is a fusion of rapid data collection, smart setup, and perfect execution. Shaking things up by moving trials to unconventional venues — while keeping study integrity intact — can speed up the data harvest. 

• The bar in fundraising is high, but entrepreneurs who show resilience, adaptability, a solid exit plan, and a willingness to do what it takes will capture investors’ interest.